Circular No. 107-TC/TCT guides the implementation of tax policies for duty-free shops at seaports and international airports. The document specifies the applicable subjects, types of taxes, and specific tax rates for each business case.
적용 범위
Duty-free shops at seaports and international airports are permitted to operate under various forms such as self-operating businesses, acting as agents for foreign sales, or cooperating with foreign parties.
핵심 사항
- Duty-free shops importing goods from abroad for sale at the shop are exempted from import tax (Article II.1).
- Goods purchased from the domestic market for sale at duty-free shops must be subject to export tax according to the export tax schedule (Article II.1).
- Business income tax applies at a rate of 1% on total business revenue, or 14% on the difference between selling price and purchase price if approved by the tax authority (Article II.2).
- Profit tax payable is 45% on taxable profit (Article II.2).
- Foreign parties participating in duty-free shop operations through revenue-sharing or profit-sharing arrangements must pay business income tax and profit tax according to the rates specified in the investment license (Article II.3).
🌐 이 문서의 사회적 영향
- Strengthening tax management for duty-free shop operations to ensure fairness in tax payment.
- Reducing tax evasion through penalties for selling to incorrect customers or consuming in the domestic market (Article II.1).
- Foreign parties participating in duty-free shop operations may have to pay additional repatriation tax on profits transferred abroad at the rate specified in the investment license.
- Facilitating Vietnamese enterprises when collaborating with foreign entities in operating duty-free shops.
❓ 자주 묻는 질문
What types of taxes must duty-free shops pay?
Duty-free shops must pay export tax, business income tax, and profit tax. Business income tax applies at a rate of either 1% or 14%, while profit tax is 45%. Foreign parties participating in duty-free shop operations may also have to pay additional repatriation tax on profits transferred abroad.
Are there specific regulations regarding the import of goods into Vietnam for sale at duty-free shops?
Goods imported from abroad into Vietnam for sale at duty-free shops are exempt from import tax. However, if sold to incorrect customers or consumed in the domestic market, the previously exempted import tax must be paid back along with a penalty twice the amount of evaded tax.
What tax obligations do Vietnamese enterprises operating duty-free shops as agents for foreign sales have?
Vietnamese enterprises pay business income tax at a rate of 12% on commissions received and profit tax according to the regime. Foreign parties pay business income tax and profit tax at a combined rate of 8% on the total amount paid by the Vietnamese enterprise.
Must foreign parties participating in duty-free shop operations pay repatriation tax on profits?
Foreign parties participating in joint ventures or cooperative contracts with foreign capital that have been granted an investment license by the State Council on Cooperation and Investment must pay repatriation tax on profits transferred abroad at the rate specified in the investment license.
What responsibilities do duty-free shops have when selling inventory in the domestic market?
Before selling inventory in the domestic market, the shop must declare to the customs authority directly managing the shop to calculate and collect the import tax according to the regulations.
전문
|
MINISTRY OF FINANCE |
SOCIALIST REPUBLIC OF VIETNAM |
|
NUMBER: 107-TC/TCT |
HA NOI, December 30, 1993 |
CIRCULAR
GUIDELINES ON THE IMPLEMENTATION OF TAX POLICIES FOR DUTY-FREE SHOPS AT SEAPORTS AND INTERNATIONAL AIRPORTS IN VIETNAM ISSUED BY THE MINISTRY OF FINANCE NUMBER 107-TC/TCT ON DECEMBER 30, 1993
On November 13, 1990, the Ministry of Trade and Customs issued Circular No. 12 TTLB/TN-TCHQ on the organization and operation of duty-free shops at seaports and international airports, and the Ministry of Finance also issued Circular No. 165 TC/TCT dated March 31, 1992, guiding the implementation of tax policies for this activity. However, upon inspection, it was found that the implementation was inconsistent across units.
To ensure uniform tax management for this activity nationwide, based on current tax laws and ordinances, the Ministry of Finance provides guidelines for implementing tax policies for this form of business as follows:
I- APPLICABLE OBJECTS
This circular applies to duty-free shops permitted to sell goods to outbound passengers and transit passengers at seaports and international airports in Vietnam, organized under the following forms:
1. Domestic enterprises operating independently.
2. Domestic enterprises operating as agents for foreign entities or both independently and as agents for foreign entities.
3. Domestic enterprises entering into contracts with foreign parties to operate duty-free shops through revenue sharing or profit sharing arrangements.
4. Foreign-invested enterprises and foreign parties participating in joint ventures approved by the State Committee for Cooperation and Investment to engage in duty-free shop operations.
II- TYPES OF TAXES APPLICABLE
1. Import and export taxes:
Goods imported from abroad into Vietnam for sale at duty-free shops are exempt from import duties.
Goods purchased from the domestic market for sale at duty-free shops are considered exports and must be subject to export duties according to the rates specified in the export tariff schedule.
For goods imported for sale at duty-free shops, if sold to the wrong target group or consumed in the domestic market, they will be treated as tax evasion in all cases, and the duty-free shop must pay back the exempted import duties and be fined twice the amount of the evaded taxes.
2. Business income tax and profit tax:
- Business income tax is calculated on the total sales revenue (regardless of whether it is from imported goods or domestically produced goods) at a rate of 1% for export business activities. In cases where the duty-free shop maintains books and records in accordance with regulations and meets conditions approved by the tax authority, it shall pay business income tax at a rate of 14% on the difference between selling price and purchase price.
- Profit tax payable is 45% of taxable profits.
For duty-free shops involving foreign participation, depending on the form of business organization, business income tax and profit tax shall be implemented as follows:
a) In the case of domestic enterprises operating duty-free shops as agents for foreign entities:
- The domestic enterprise pays business income tax at a rate of 12% on commissions received and pays profit tax according to the prescribed regime.
- The foreign party pays business income tax and profit tax at a combined rate of 8% on the total amount paid by the domestic enterprise for sales made as an agent.
b) In the case of domestic enterprises cooperating with foreign entities to operate duty-free shops through revenue sharing:
- The domestic enterprise pays business income tax on its share of revenue and pays profit tax according to regulations.
- The foreign entity pays business income tax and profit tax at a combined rate of 8% on the total revenue shared.
c) In the case of domestic enterprises cooperating with foreign entities to operate duty-free shops through profit sharing, the duty-free shop pays business income tax and profit tax according to regulations for domestic enterprises, and when the foreign entity transfers its share of profits out of the country, it is not subject to withholding tax on repatriation of profits.
d) Foreign-invested enterprises and foreign parties participating in joint ventures approved by the State Committee for Cooperation and Investment to engage in duty-free shop operations shall pay business income tax and profit tax according to the provisions in their investment permit.
3. Withholding tax on repatriation of profits:
Foreign parties participating in foreign-invested enterprises or joint ventures approved by the State Committee for Cooperation and Investment to engage in duty-free shop operations shall pay withholding tax on repatriation of profits at the rate specified in their investment permit.
Foreign parties participating in duty-free shop operations under other forms are not subject to withholding tax on repatriation of profits.
4. Other types of taxes:
Other types of taxes such as high-income tax, land rental fees, business license tax, etc., shall be paid by the duty-free shop according to current regulations.
III- PROCEDURES FOR EXEMPTION FROM IMPORT DUTIES AND COLLECTION OF IMPORT DUTIES
Each time a duty-free shop imports goods for sale at the shop, it must present the following documents to the customs office at the port of entry:
- Quota granted by the Ministry of Trade allowing the shop to import goods for sale to outbound passengers.
- Import declaration form.
- Purchase contract or agency agreement for selling goods for foreign entities.
- Invoice, packing list.
Based on these documents, the customs office directly managing the duty-free shop shall handle the import procedures, stamp "duty-free" on the declaration form, escort the consignment to the warehouse, and implement customs supervision and sealing according to regulations.
The customs office directly managing the duty-free shop is responsible for maintaining records to monitor and supervise the stock-out and sales activities of the duty-free shop. The General Department of Customs will study and guide the procedures for monitoring and supervising the import and export of goods and sales activities of duty-free shops to ensure uniform implementation nationwide.
Quarterly, the shop must prepare a sales report and inventory check report to be submitted to the Ministry of Finance, the Ministry of Trade, and the General Department of Customs (with confirmation from the managing customs office).
In the case where the store has inventory and is permitted by the Ministry of Trade to sell the existing inventory on the Vietnamese market, the store must declare to the customs authority directly managing the store before selling goods on the Vietnamese market in order to calculate and collect import duties according to the regulations.
IV- PROCEDURE FOR PAYING BUSINESS INCOME TAX AND PROFIT TAX
The duty-free store shall declare and pay business income tax and profit tax in accordance with Circulars No. 73A TC/TCT and Circular No. 75A TC/TCT dated August 31, 1993 issued by the Ministry of Finance.
For cases where foreign parties pay business income tax and profit tax at the consolidated rate, they shall declare and pay in accordance with Circular No. 30 TC/TCT dated July 18, 1992 issued by the Ministry of Finance.
V- IMPLEMENTATION PROVISIONS
This Circular takes effect from the date of signature. Any difficulties encountered during implementation should be reported to the General Department of Taxation under the Ministry of Finance for timely research and resolution.
|
|
Phan Van Dinh (Signed) |
관계도
문서를 클릭하면 열립니다. 빨간 테두리＝효력을 변경하는 관계.